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Retail Apocalypse: Why Are Major Retail Chains All Over America Collapsing?

Sunday, February 17, 2013 17:50
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(Before It's News)

Michael Snyder
Activist Post

If the economy is improving, then why are many of the largest retail chains in America closing hundreds of stores? When I was growing up, Sears, J.C. Penney, Best Buy and RadioShack were all considered to be unstoppable retail powerhouses. But now it is being projected that all of them will close hundreds of stores before the end of 2013. Even Wal-Mart is running into problems. A recent internal Wal-Mart memo that was leaked to Bloomberg described February sales as a “total disaster”. So why is this happening? Why are major retail chains all over America collapsing? Is the “retail apocalypse” upon us?

Well, the truth is that this is just another sign that the U.S. economy is falling apart right in front of our eyes. Incomes are declining, taxes are going up, government dependence is at an all-time high, and according to the Bureau of Labor Statistics the percentage of the U.S. labor force that is employed has been steadily falling since 2006. The top 10% of all income earners in the U.S. are still doing very well, but most U.S. consumers are either flat broke or are drowning in debt. The large disposable incomes that the big retail chains have depended upon in the past simply are not there anymore. So retail chains all over the United States are now closing up unprofitable stores. This is especially true in low-income areas.

When you step back and take a look at the bigger picture, the rapid decline of some of our largest retail chains really is stunning.

It is happening already in some areas, but soon half empty malls and boarded up storefronts will litter the landscapes of cities all over America.

Just check out some of these store closing numbers for 2013. These numbers are from a recent Yahoo Finance article

Best Buy
Forecast store closings: 200 to 250 

Sears Holding Corp.
Forecast store closings: Kmart 175 to 225, Sears 100 to 125 

J.C. Penney
Forecast store closings: 300 to 350 

Office Depot
Forecast store closings: 125 to 150 

Barnes & Noble
Forecast store closings: 190 to 240, per company comments 

Gamestop
Forecast store closings: 500 to 600 

OfficeMax
Forecast store closings: 150 to 175 

RadioShack
Forecast store closings: 450 to 550

The RadioShack in a nearby town just closed up where I live. This is all happening so fast that it is hard to believe.

But the truth is that those store closings are not the entire story. When you dig deeper you find a lot more retailers that are in trouble.

For example, Blockbuster recently announced that this year they will be closing about 300 stores and eliminating about 3,000 jobs.

Toy manufacturer Hasbro recently announced that they will be reducing the size of their workforce by about 10 percent.

Even Wal-Mart is going through a tough stretch right now. According to documents that were leaked to Bloomberg, Wal-Mart is having an absolutely disastrous February…

Wal-Mart Stores Inc. had the worst sales start to a month in seven years as payroll-tax increases hit shoppers already battling a slow economy, according to internal e-mails obtained by Bloomberg News. 

“In case you haven’t seen a sales report these days, February MTD sales are a total disaster,” Jerry Murray, Wal- Mart’s vice president of finance and logistics, said in a Feb. 12 e-mail to other executives, referring to month-to-date sales. “The worst start to a month I have seen in my (more than) 7 years with the company.”

So what in the world is going on here?

The mainstream media continues to proclaim that we are experiencing a robust “economic recovery”, but at the same time there are a whole host of indications that things are continually getting worse.

Even global cell phone sales actually declined slightly in 2012. That was the first time that has happened since the last recession.

Perhaps it is time that we faced the truth. The middle class is shrinking, incomes are declining and there are not nearly as many jobs as there used to be.

Mort Zuckerman pointed this out in a recent article in the Wall Street Journal

The U.S. labor market, which peaked in November 2007 when there were 139,143,000 jobs, now encompasses only 132,705,000 workers, a drop of 6.4 million jobs from the peak. The only work that has increased is part-time, and that is because it allows employers to reduce costs through a diminished benefit package or none at all.

So how can the mainstream media be talking about how “good” things are if we still have 6.4 million fewer jobs than we had back in November 2007?

And sadly, things may soon be getting a lot worse. If Congress does not do anything about the “sequester”, millions of federal workers may shortly be facing some very painful furloughs according to CNN

Federal workers could start facing furloughs as early as April, according to federal agencies trying to prepare for the worst. 

Unless Congress steps in, some $85 billion in massive spending reductions will hit the federal government, doling out furloughs to much of the nation’s 2.1 million federal workforce, experts say.

If you still live in an area of the country where the stores and the restaurants are booming, you should be very thankful because that is not the reality for most of the country.

I often write about the stunning economic decline of major cities such as Detroit, but there are huge sections of rural America that are in even worse shape than Detroit in many ways.

For example, many Indian reservations all over America have been shamefully neglected by the federal government and have become hotbeds for crime, drugs and poverty.

Business Insider recently profiled the Wind River Indian reservation in western Wyoming. The following is a brief excerpt from that outstanding article

The Wind River Indian Reservation is not an easy place to get to, but I had to see it for myself. 

Thirty-five-hundred square miles of prairie and mountains in western Wyoming, the reservation is home to bitter ancestral enemies: the Eastern Shoshone and Northern Arapaho tribes. 

Even among reservations, it’s renowned for brutal crime, widespread drug use, and legal dumping of toxic waste.

You can see some amazing photos of the Wind River Indian reservation right here.

It is hard to believe that there are places like that in America, but the truth is that conditions like that are spreading to more U.S. communities with each passing day.

We are a nation that is in an advanced state of decline. But as long as the financial markets are okay, our leaders don’t seem too concerned about the suffering that everyone else is going through.

In fact, former Federal Reserve Chairman Alan Greenspan essentially admitted as much during a recent interview with CNBC. The following is how a Zero Hedge article summarized that interview…

Starting at around 1:50, Greenspan states the odds of sequester occurring are very high – in fact, the playdough-faced ex-Chair-head notes, “I find it very difficult to find a scenario in which [the sequester] doesn’t happen” But when asked how this will affect the economy, Awkward Alan is unusually clearly spoken – “the issue is how does it affect the stock market.” 

While not so many of our leaders have taken the path to direct truthiness, Greenspan somewhat shocks a Botox’d and babbling Bartiromo when he admits “the stock market is the key player in the game of economic growth.” 

Bartiromo shifts uncomfortably in her seat, strokes her imaginary beard and stares blankly as Greenspan explains that while the sequester will have a real effect on the real economy, “if the stock market can hold up through this, then the effect will be rather minor.”

Do you see?

As long as the stock market is moving higher they think that everything is just fine and dandy.

And the Obama administration?

They continue to pursue the same policies that got us into this mess.

Their idea of “economic reform” is to threaten to sue businesses that do not hire ex-convicts.

And of course now that Obama has been re-elected he is putting a tremendous amount of effort into “stimulating the economy”.

For example, he spent this weekend golfing in Florida, and the Obamas recently spent about 20 million taxpayer dollars vacationing in Hawaii.

Meanwhile, the U.S. economy is getting worse with each passing day.

If you doubt that economic conditions are getting worse, please read this article: “Show This To Anyone That Believes That ‘Things Are Getting Better’ In America“.

When you look at the cold, hard numbers, it is undeniable what is happening to America.

And our leaders are not doing anything to fix our problems. In fact, most of the time they are just making things worse.

So buckle up and get prepared. We are in for very bumpy ride, and this is only just the beginning.

This article first appeared here at the Economic Collapse Blog.  Michael Snyder is a writer, speaker and activist who writes and edits his own blogs The American Dream and Economic Collapse Blog. Follow him on Twitter here.

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Total 12 comments
  • Maryjo

    Wow! No one has a thing to say, when the truth is slapping them in the face….Everything has been an epic fail since 2001…

  • Scootch

    Only the zombie sheep believe the depends-laden geriatric media any more.

  • PinkUnicorn

    People today are too poor to buy their lead-laced Chinese crap. Maybe Walmart would have better sales if they continued to sell guns and ammo. That seems to be what people are buying these days.

  • Stēkō

    If you haven’t already given your heart to Jesus, might I spend a few brief seconds of your time introducing you to the matchless LOVE He has for you? Consider if you can wrap your heart around it, the fact that God at creation, created you in His likenes and image; now you know why your heart yearns for LOVE and acceptance, and is so very easily wounded by the lack. But did you know that He LOVES you so much, that faced with the possibility of being without you, yes you personally, He choose to voluntarily give up His divinity, to take on the flesh and heart of mankind, and willingly laid down His life, though sinless, for sinfull us, me and you, all of us.
    I can Love a God, anyone who can love like that, only Jesus can though, and did.
    Why would I encourage you towards Jesus? Because one of the many hundreds of promises He gave for just this time we live in is ” your bread and water are sure “; based upon one set of conditions, that you LOVE Him. And how do you know when you love Him? Simple, He said ” If you love me keep my commands “, by Faith we are saved, and through the works of Faith we are obiedent, Jesus Alone is the ONLY NAME by which men are saved, no other god, no other name, only Jesus.

    I am Stēkō
    Steadfast

  • Anonymous

    Oh great. I already lost my job at JCPenney last March. My husband just got a job at Office Max. We are tired of being beat to s**t.

  • horedog

    THAT WHAT OBAMA DOING YEA GETTING BEETER . IMPEACH

  • Mayhem

    Internet killed the retail star
    In my mind and in my car
    We can’t rewind we’ve gone to far
    Pictures came and broke your heart
    Put the blame on interweb.

  • clockwork angel

    When Obama talks about the economy is improving he is talking about China’s not the U.S…..if made in China you support China if made in America then you support America….The Jobs he speaks about is is own little government and those of other countries like India and China where big business is being sent..slowly but surely we are being forced into where there will only be Chinamart one store , one bank, one currency,one social class, one world order.

  • Anonymous

    No one saw this coming ? When you have the U S Government PAYING CORPORATIONS to relocate to India and China ! The U S manufacturing Industry has been hollowed out . The greed of politicians and top management to make ever increasing profits for the short term gain , at the expense of the average working stiff , is now coming a predictable END ! Next the Politicans will being saying it is the welfare system that is the cause of all this mess . ” We must slash it ! “. Then , welcome to the plantation States of America !

  • Anonymous

    At this time of the year, all the income tax collectors of big checks usually go on a spending spree. Thanks to the delay of this years filing gate opening and it seems that the irs is dragging there feet giving refunds, sales have plummeted!. WAY TO GO THERE BIG BROTHER!. They know that this time of year retailers are dependent on tax refunds being spent and with uncle same doing a backwards walk will just send retailers shutting doors. Mostly the poor who get these big refund checks are the spenders and the irs is kicking them in the guts this year.

  • horedog

    IF AMAZES ME WHAT BUSH WHO I VOTED FOR. OBAMA WHO I DIDNT VOTE FOR HAVE RUINED THIS ONCE GREAT COUNTRY THEY SHOULD BE IN PRISON.JUST CANT BELIEVE IT

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